Partnerships with family
Hello Biggerpockets community,
I am a novice real estate investor. Currently house hacking my first property (a triplex). I have been very interested in forming a partnership due to my lack of capital to invest. I have been in discussion with my uncle who is an experienced real estate investor on potentially partnering up on a future project. My uncle would provide the purchase price and down payment and I would perform all of the work and we would split it in half. I would like to form an LLC with each of us on the llc. I am looking for any advice/tips while I am preparing to set up this LLC and put our first project under contract! Thank you
@Apostolos Karnavas I agree with @Richard Bechtol An attorney will make sure both you and your uncle have everything spelled out.
This deal will have many components to it;
1) The initial purchase (who's paying for what)
2) The rehab work, who's doing it, and who's paying for it
3) The mortgage once rehab is completed, and how much money is your uncle getting back after the mortgage is in place
4) The ongoing operations after the rehab, who's managing the property, who has what responsibilities
5) The exit strategy should one of you wants to exit the deal, or the agreed upon exit strategy based on the joint plan.
You're asking about various templates, I would recommend using them as a learning tool, but don't write-up anything yourself, have an attorney do it.
Quote from @Ray Johnson:
@Apostolos Karnavas I agree with @Richard Bechtol An attorney will make sure both you and your uncle have everything spelled out.
This deal will have many components to it;
1) The initial purchase (who's paying for what)
2) The rehab work, who's doing it, and who's paying for it
3) The mortgage once rehab is completed, and how much money is your uncle getting back after the mortgage is in place
4) The ongoing operations after the rehab, who's managing the property, who has what responsibilities
5) The exit strategy should one of you wants to exit the deal, or the agreed upon exit strategy based on the joint plan.
You're asking about various templates, I would recommend using them as a learning tool, but don't write-up anything yourself, have an attorney do it.
Thank you!